If you’re a real estate investor, especially one who invests out-of-state, understanding which rental property travel expenses qualify as a deductible can make a big difference come tax time. Whether you’re traveling to evaluate rental properties, attend networking events, or to meet with property managers, many of your business travel expenses may be deductible—as long as you follow the IRS guidelines.
We put together the following tips specifically for RealWealth members who attend property tours to view turnkey rental properties sold by teams in the RealWealth network and attend our live events. However, these rules apply to all real estate investors who want to better understand how to deduct business travel expenses while staying compliant with IRS regulations.
As always, consult your CPA or tax advisor for personalized guidance.
6 Guidelines for Deducting Rental Property Travel Expenses
1. Primary Purpose of the Trip
To deduct rental property travel expenses, the primary purpose of the trip must be business-related. This means that the majority of the days spent traveling must involve business activities—such as attending a property tour, meeting with a property management company, or touring potential investment neighborhoods. If more than half of your trip involves personal activities, the travel may not qualify for deductions.
Example: You fly to Jacksonville for a RealWealth property tour on Friday and Saturday, and then spend Sunday sightseeing. Since two out of the three days were business-related, the trip would generally qualify.
2. Transportation Costs
You can deduct the cost of getting to and from your rental property business destination. This includes:
- Airfare, train, or bus tickets
- Car rental fees
- Mileage if using your personal vehicle (based on IRS standard mileage rates)
- Taxis, rideshare (Uber/Lyft), or airport shuttles
Travel between your hotel and your business activities is also deductible.
3. Lodging and Meals
If you’re staying overnight for business, your lodging expenses are typically deductible. Meals while traveling are generally 50% deductible, as long as they are not considered lavish or extravagant.
Pro tip: Save your hotel receipts and keep notes on who you met with and what business was discussed at meals.
4. Combining Business with Personal Travel
It’s perfectly fine to enjoy some personal time on your trip—but only the portion directly related to your real estate business is deductible. If you stay extra days for vacation, those personal expenses aren’t deductible.
Example: You attend a three-day real estate event but spend two additional days at the beach. You can only deduct the three business days’ worth of lodging and meals.
5. Family Accompaniment
If a spouse, partner, or children join you on the trip, their travel costs are not deductible unless they are employees of your business and traveling for a legitimate business purpose.
6. Record-Keeping is Key
To claim rental property travel expense deductions, the IRS requires detailed documentation. Keep:
- Travel receipts
- A log of mileage (if applicable)
- Notes on the business purpose for each expense
- Proof of the business activities conducted
Apps like Expensify or MileIQ can make tracking your deductible business travel expenses much easier. Understanding deductible business travel expenses for real estate investors can help you maximize your write-offs and reduce your tax liability. With proper planning and documentation, you can make the most of your travel—both financially and professionally.
